Global money transfer platform Wise has been ordered to pay $2.025 million in penalties by the Consumer Financial Protection Bureau (CFPB) for misleading U.S. customers about fees, exchange rates, and service perks.
According to the CFPB, the London-based company falsely advertised lower ATM fees, free withdrawals, and other benefits in customer communications, including emails and blog posts. However, these perks did not apply to U.S. customers, creating a misleading impression.
Wise also failed to properly disclose exchange rate costs and did not provide accurate fee information for consumers funding prepaid accounts via Apple Pay or Google Pay using a credit card. Additionally, the company neglected to refund fees when funds were not available to the recipient by the promised date.
As a result, the CFPB has mandated Wise to compensate affected customers with $450,000 in refunds and pay an additional $2.025 million into the agency’s victims relief fund.
“By deceiving customers, Wise gave itself an unfair advantage over competitors in the remittances market,” said CFPB Director Rohit Chopra. “New technology can make money transfers cheaper and more efficient, but companies must be transparent and comply with the law.”
The penalty underscores the importance of accurate fee disclosures in the financial technology sector and reinforces regulatory scrutiny on firms operating in the remittance space.
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